MANILA, Philippines — The Department of Budget and Management (DBM) has recommended the further study of several bills seeking adjustments of the excise taxes on alcohol and tobacco products as the agency does not want the additional revenues from sin products be earmarked for specific programs and projects.

In its position paper, the DBM expressed opposition to the use of additional excise tax revenues for specific programs like education and health insurance, saying these are already being funded under the annual national budget.

“The revenue impact of increasing the tax on alcohol and tobacco products as proposed has to be studied as to its possible counter-effects on volume, and more generally on the market or industry,” the agency said.

Under the House Bill 2484, the proposed measure is seeking an additional 10 percent excise tax on alcohol products to support specific programs of the Department of Education.

Also, HB 2485 is seeking for an additional P3 tax per pack of cigar and cigarettes, which would support the PhilHealth program.

“The DBM is not recommending the exclusive use or earmarking of the additional revenues for specific programs and projects that are already being funded in the General Appropriations Act,” the agency said.

DBM added that the proposal to earmark additional revenues for the specific programs of DepEd is not consistent with the one-fund concept.

“For better fiscal management, the one-fund concept has been adopted to serve as an avenue through which fiscal authorities may properly allocate scarce government resources in accordance with the priorities in the over-all program of economic development,” it said.

The budget department also cited Section 282 of the National Internal Revenue Code, as amended, which states that the national internal revenue collected shall accrue to the National Treasury and shall be available only for the general purposes of the government.

The agency also noted that DepEd has continued to be the largest recipient of the government’s limited resources.